Government audit flags Sh268 billion in unverified pending bills

A government audit has revealed that more than Sh268 billion in pending bills lack the necessary documentation to justify payment.

The Pending Bills Verification Committee, tasked with reviewing outstanding claims, found that some records were incomplete while others had missing delivery documentation, making them ineligible for settlement.

A preliminary report presented to the National Assembly Liaison Committee indicates that the audit team, chaired by former Auditor-General Edward Ouko, has reviewed Sh664 billion in claims so far.

Out of this, Sh206 billion has been verified as eligible for payment. However, National Treasury Cabinet Secretary John Mbadi stated that the committee has only analysed 48 percent of the bills and has yet to complete its work.

“The committee has received a total of Sh664 billion in pending bills from individuals, corporate bodies, and companies. While it has yet to complete its work, it has so far certified Sh206 billion as eligible for payment,” Mbadi said on Wednesday.

The Treasury boss noted that the committee has examined Sh474 billion out of the total Sh655 billion in pending claims.

“What I presented to the committee on the status of pending bills is just a preliminary report. The team has yet to complete its work and may even add more claims. So, we are still waiting for the final report,” Mbadi said.

“As of now, if the government has funds, the Sh206 billion should be paid,” he added.

According to National Treasury documents submitted to the committee, the highest outstanding verified bills are in the energy, infrastructure, and ICT sectors, amounting to Sh97 billion. Health follows with Sh41 billion, education with Sh28 billion, and national security with Sh20 billion.

Other sectors with verified pending bills include Environment, Water, and Natural Resources (Sh3.7 billion), General Economic and Trade Affairs (Sh1.2 billion), and Agriculture and Urban Development (Sh2.2 billion).

Mbadi did not specify when the government would settle the certified pending bills.

The Pending Bills Verification Committee was formed in September 2023 to address the growing backlog of unpaid claims owed to businesses and individuals.

These bills include both current and historical obligations, classified under goods, services, works, employee-related claims, court awards, legal representation, loans, and human-wildlife conflict compensation.

The report further details that out of 33,634 pending bills related to goods supplied to the government, worth Sh209 billion, the committee has analysed 23,376 and approved 1,332 claims worth Sh11 billion for payment.

For services rendered, 33,074 claims totaling Sh144 billion were submitted. The committee has analysed 14,110 and approved 8,833 claims worth Sh38 billion for payment.

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Employee-related claims amount to Sh104 billion from 33,322 applications, of which 2,316 have been reviewed, clearing 1,411 claims worth Sh3.4 billion.

Other services have 3,396 pending claims amounting to Sh201 billion. The committee has analysed 2,316 and approved 657 claims with a total value of Sh103 billion for payment.

Additionally, 12,053 claims related to human-wildlife conflict, totaling Sh3.4 billion, were received, with Sh240 million approved for settlement.

The Pending Bills Review Committee is responsible for analysing the government’s unpaid obligations and making recommendations on settlement.

The Ouko-led committee is also mandated to establish clear criteria for verifying pending bills and identifying fraudulent claims, corruption, or false submissions, forwarding such cases to relevant authorities.